Moody’s downgrades Eskom, bonds to Ba3

Moody's Investors Service said it downgraded Eskom Holdings SOC Ltd.’s long-term corporate family rating and zero-coupon eurobonds to Ba3 from Ba2.

Concurrently, the agency downgraded the company’s global medium-term note (GMTN) program and the senior unsecured GMTNs to provisional B1/B1 from provisional Ba3/Ba3.

The probability of default rating was lowered to Ba3-PD from Ba2-PD and the national scale rating long-term corporate family rating to A3.za from A2.za.

All ratings are under review for further downgrade.

Moody’s said the actions reflect: (a) Its view that the stand-alone credit strength of the company has weakened as a result of its deteriorating liquidity position and poor corporate governance in the context of a more volatile funding environment; and (b) that the likelihood of timely government support may have reduced.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.